Tara Mines Holdings profits soar to €31.5m

PRE-TAX profits at the company that operates Tara Mines in Co Meath last year increased more than fivefold to €31.5m.

The zinc mine is the largest in Europe and fifth largest in the world, employing over 700 people.

Filings just lodged with the Companies Office show that revenues at the Swedish-owned Tara Mines Holdings Ltd and subsidiaries increased by 22% last year from €153m to €187.9m in the 12 months to the end of December last.

Production at the mine began in 1977 and since then over 70 million tonnes of ore have been mined.

Last year, 167,334 tonnes of zinc was produced at the mine compared to 185,558 tonnes in 2009.

The mine was purchased by Swedish company, Boliden, in 2004.

According to the directors’ report, the mine has reserves until 2019 and prices for both zinc and lead remained stable in 2010.

Earlier this year Boliden secured planning permission from Meath County Council for an extension to the underground mining operations.

The directors state: “While the outlook for the mine’s future remains positive, current global economic and market conditions requires the group to remain focused on productivity improvements and controlling its cost base.”

The profits also take account of €28.7m in the non-cash depreciation cost last year.

The numbers employed at the mine increased from 682 to 707, with staff costs totalling €58.4m, including €420,000 paid to directors.

At the end of December last, the company had shareholder funds totalling €132.9m. The filings confirm that the company’s operating profits increased by almost 300% from €8.4m to €33.3m. The company’s pre-tax profits increased from €5.3m to €31.5m.

The figures show that the company’s administrative expenses amounted to €11.6m. Cost of sales increased from €127.1m to €136.6m. The company paid tax of €8.2m on its profits last year leaving a post-tax profit of €23.2m.